Podvertising Like the blogging boom of recent years, podcasting is quickly crossing over into the mainstream. Thanks to its growing popularity, podcasts are poised to grab a sizable slice of the online advertising pie.
A podcast is loosely defined as digital media file that is distributed over the Web using syndication feeds, which can be played on portable media players and personal computers. Specifically, a podcast is a type of webcast, which can mean either the content itself or the method by which it is syndicated (which is also is termed as podcasting).
Though the web sites of podcasters may also feature direct download or streaming of their content, a podcast is different from other digital media formats because of its unique ability to be downloaded automatically, using software that is capable of reading feed formats, such as RSS.
A 2006 report released by Nielsen Analytics found that podcasts are attracting a large number of listeners, a shift that advertisers and various media companies have noted.
According to the Nielsen report, 10% of their respondents stated they download eight or more podcasts per week. Of the podcast users, 38% said they listen to the radio less because they’re listening to podcasts.
Research firm eMarketer also predicts that advertisers will spend more than $400 million on podcasting by 2011, up from $80 million in 2006.
The number of podcast listeners is expected to mushroom over the next four years, the eMarketer report predicts, reaching a total of 50 million listeners by 2010, with roughly 15 million listeners being described as active (listeners who download podcasts on a weekly basis).
Podcasting has already become enticing to big name advertisers, including auto companies such as Toyota, Volvo and Honda, which have begun sponsoring podcasts. The report states that since “podcasting is positioned to deliver highly specialized content to niche groups,” that many diverse types of advertisers are also likely to tap into the medium.
The entry of major media companies, such as CBS Radio, into podcasting have also encouraged advertisers to embrace the emerging medium. The increase of video podcasts, which lend themselves to the kind of video ads that marketers are accustomed to developing for television, has also increased advertiser interest.

Online video advertising represents one of the ad world’s fastest growing segments. Last year, New York City-based research company eMarketer estimated that spending for online video advertising will reach $410 million, an 82.2% gain over the $225 million figure in 2005. In as little as two years, eMarketer speculates that US marketers will spend over $1 billion.

By 2009 and 2010, as online video advertising becomes as mainstream as Internet advertising, online video advertising will be a $2.90 billion business.

With broadband internet connections now becoming the norm for the average Web surfer, the Internet is quickly developing into the medium that people watch, rather than read, writes Rob Gerlbeck in his enlightening article Video killed the banner ad (Marketing magazine).

Static banner ads, once the standard form of online advertising, have begun to infuse an eye-catching mix of sight, sound, and motion. The introduction of dynamic online videos has afforded them more capabilities to do more effective advertising on the Web.

An article on BtoB magazine online (Picture This by Kate Maddox), also points to this burgeoning phenomenon. Maddox states that online video is fast becoming the killer application of the Internet as various marketers begin to treat them as an essential part of their programs, utilizing online video ads in a variety of formats, be it a 15-second banner ad or a long-form documentary..

With the expected swell in online video spending, media companies are scrambling to get in on the action, as proven by the recent partnership between NBC Universal and News Corporation to form an online video ad network. The video network will be distributed by their partners, which include Microsoft Corp.’s MSN, News Corp.’s MySpace, Time Warner’s AOL and Yahoo.

These recent developments have forced marketers to take video marketing more seriously. They have started to allocate ad dollars for web-only videos. Rather than merely repurposing TV spots for the Internet, advertising agencies have also begun to do more original video production work targeted for online content.

Leading on-line text and video content producer, InfoSearch Media, recently released their financial results for its fiscal year, which ended on December 31, 2006.

It’s interesting to note that the company’s ContentLogic revenue grew by as much as 55% in 2006 to $6.0 million, up from $3.9 million in 2005. InfoSearch’s total 2006 revenue was $7.6 million, compared to $9.4 million in 2005.

InfoSearch Media (www.infosearchmedia.com) is the largest dedicated developer of smart, targeted text, and video content-based solutions for the Web. Their clients include publishers, small eBusinesses, and large major brand companies. Currently, InfoSearch works with more than 2,500 clients in nine countries, helping them obtain increased traffic, higher organic search rankings, brand recognition, and better website performance.

InfoSearch’s network of professional writers, editors, technical specialists and video producers also helps businesses succeed on the Web by implementing text and video content-based Internet marketing solutions.

During the first quarter of 2006, InfoSearch introduced its new search-targeted on-line video product, which is a scalable production process to provide on-line text-to-video content at a reasonable price.

Search-targeted video is currently being offered to a select number of major partners, and will be made widely available to on-line publishers and businesses through the InfoSearch Media sales force in the second quarter of this year.

In a press release, InfoSearch also announced that they will be expanding their range of complementary products to include a suite of search engine optimization (SEO) consulting and implementation services. The introduction of these new services will complement its existing product lines, which include on-line text and video content development.

Client engagements for SEO services consist of a four-step process, including initial project scope definition; site analysis and audit; recommendations and implementation; and ongoing results monitoring and tuning.

The company’s new, dedicated SEO group also reflects the growing needs of their clients. Offering a full-line of SEO consulting and services is a natural extension to their existing services, as well as a and a logical next step in the evolution of the company.

While browsing through the March issue of Marketing magazine, an interesting article, Screen Captures, caught my attention. The author, Marketing Media Editor Chris Powell, explored the promising possibilities of Digital Sign Advertising or, as he put it, Digital Signage 2.0.

Digital monitors that deploy personalized and situation-specific ads may seem like a futuristic notion in this day and age, yet the next generation of digital signage is utilizing modern technology to bring consumers and marketers together in a manner that was once impossible.

Today, most digital signage show a series of ads in a video loop (usually action-focused and attention-grabbing ads with rotating products, vibrant scenery, and flashy colors). They have already been installed in retail stores, highways, airports, and even sports bars. But Powell talks about a future in which these digital display units utilize technology like radio frequency identification (RFID)-activated by a tiny chip embedded in the product packaging-to serve up product-specific messaging.

He calls it the digital signage equivalent of the Internet click-through. Some retails stores, like Rogers Wireless, already feature plasma screens with touch-screen functionality that sit above a shelf. These displays are equipped with a motion sensor, so that when a store customer grabs a product from the shelf, the display triggers a message inviting consumers to touch the screen to obtain more information on the selected product.

Lyle Bunn, a strategy architect of St. Joseph Communications, predicts Digital Sign Advertising will be a $3.4 billion industry by 2009, adding that many network operators and suppliers believe that adding web functionality and interactivity to displays will help it take off.

A U.S. white paper (“The disruptive effect of the Internet and mobile phones on out-of-home digital media) also notes that the digital

signage of the future will be based on an interactive web-based model with mobile devices facilitating the conversation. “The future success and differentiation of out-of-home signage networks will depend on their ability to attract, interact with and react to consumers in the moment,” the paper states. “What comes with this new technology is the ability to measure consumer interactions.”

The emerging trend of digital sign advertising can be likened to that of the established method of online advertising, in which advertisers may upload ads through a software interface and choose their placements in many different locations.

As consumers become more mobile, the importance of adding out-of-home digital media, such as digital signage, to the marketing mix is crucial for brands to stay afloat. Out-of-home digital media is an effective advertising media and is becoming a major component of advertisers media mix, much like the Internet is today.

The breaking news that Google acquired online advertising company DoubleClick for $3.1 billion from two private equity firms (Hellman & Friedman and JMI Equity) was reported by The New York Times on April 14, after weeks of public negotiations played out in the media.
While DoubleClick may not be a familiar name to most people, the company is considered to be one of the leading ad serving companies on the Internet; delivering display ads from advertising agencies to the sites where they are run.
The New York City-based DoubleClick specializes in software for display advertising and has close ties with Web publishers (including MySpace and AOL), advertisers, and advertising agencies. Their software collects data on Web surfers  interaction with ads to establish how to place the most effective display ads.
For the average Web surfer, the Google-DoubleClick merger could mean more advertising tailored to online habits, especially if both companies combine their information database on Internet use to direct specific ads to different Web surfers tastes.
While Google’s acquisition of DoubleClick may have specific, measurable merits, unsolicited display advertisements may not be fully appreciated by the largely permission-based era consumers live in today.
The permission-based era puts stress on advertisers to come up with programs where they are invited into the homes and lives of consumers. For advertising to be effective, it needs to consider an approach that respects consumers privacy.
Over the last decade, consumers have been flooded with unwanted spam, telemarketing, guerrilla marketing, and intrusive ads covering every blank space in our world. Today, consumers have had enough, and they are embracing technologies that put them in control.
Yellow Pages is the ultimate permission-based advertising medium. It puts the consumer in complete control: they provide information when the consumer wants it, and at a time when the consumer is ready to buy.
Consumers actively seek out advertising information in the Yellow Pages, which is the only medium that can claim that 100% of its ads are seen by consumers and have the full attention of the consumer.
As the Yellow Pages Publishers continue to enhance their print copies and online directories, consumers will have a wide array of choices as to the media they want to view an ad. They could click on a listing, a video, connect via phone to the merchant, or download an offer. The options are endless and exciting to contemplate on.